Adaptec (ADPT) Message Board

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Technology Stocks : Adaptec (ADPT)

ADPT 18.25

+15.8%

Jan 12 3:59 PM EST

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To: Geoffrey who wrote (1081)	2/21/1998 9:34:00 PM
From: Zeev Hed	Read Replies (1) of 5944

Geoffrey: I must agree with you. I think that Hyundai had its back to the wall and had to give away the store. Even at the very low current price of its stock, Adaptec is selling at close to 3 times sales (cheap for a proven grower). The Symbios' addition is bought in at less than half this rate. Even if they borrow about $150 MM (they have about $ 700 MM on hand, but I am sure they will want a cushion of at least $75 MM cash on hand) they will have less than $400 MM in debt on a sales base of about $1.6 Billion bucks. Not overly leveraged. It would be nice to know how is the balance sheet of Symbios when it comes in. I am sure that Adaptec negotiated to have at least some "operational cash" on hand. But I am also worried a little since Hyundai had a habit of loading up debt on the balance sheets of their subs. I hope this is not too much. Does anyone have any idea how much of a write off Adaptec will have to take? If it is in the $100 to 150 MM, I think the deal is still a very good deal. Zeev

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